Is Robstown too small to invest in??

Question

I have a property under contract and it's in a small town right outside of Corpus Christi. I am in San Antonio and I think I am going to just wholesale it. I think it's too far for me to keep it as a rental. What would you do??

Guy Gimenez · Answer

Robstown is a submarket with typical small market issues. Plenty of inventory, very few sales. I buy throughout the coastal bend but stay away from Robstown and farther south unless I'm buying at dirt value because it's much harder to exit these properties. And the days on market for Robstown is not appealing to most investors who are trying to turn properties. Under $150K, there are 12 homes for sale with only one sale since Dec. 1, 2023. 3 homes currently Pending with days on market of 79, 161 and 606.

Alecia Loveless · Answer

@Rick Pozos I have terrific rentals in towns of 2000. If I was to try to sell them I’d have no problem doing so quickly and for top dollar. I also have no problem renting them quickly for my full rental amount to great tenants. If you’re in a neighboring community to Corpus Christi neither of these things will likely be a problem for you.

Vanessa Ursery · Answer

So Robstown is actually growing especially since the Tesla factory is going over there so if you’re gonna keep it as a rental that’s pretty good if you’re going to wholesale it, it may be a little more difficult but I do know some wholesalers that work between San Antonio and corpus # if you’d like for me to put you in touch with them. I work Robstown Alice, Corpus Christi, Rockport, Portland, Ingleside areas.

David Ramirez · Answer

Hey @Rick Pozos,

We've done deals in small towns with less than 10,000 people, but it would have to be an amazing deal because your pool of buyers is so small. You want to wholesale deals in places with enough demand and growth and that's why we don't market in counties with a population of less than 150,000.

Is the ROI much better than any deal you could find in Corpus Christi or closer? If so, I would definitely try to wholesale, unless there are active properties in the area with the same ROI.

Marco Padilla · Answer

Hello Rick,

It sounds like you have an interesting opportunity with a property under contract in a small town near Corpus Christi. While you are in San Antonio and considering wholesaling the property, I wanted to share a similar experience we had that might provide some insight.

We also faced a situation where we bought properties in the early stages and decided to keep them as rentals instead of selling. Initially, concerns about the distance between our location and the rental properties arose. However, we found that by leveraging a local property management company and trusted professionals in the area, we were able to successfully manage our properties and generate a steady stream of income.

Keeping the property as a rental can have its advantages, especially when the property is in an area experiencing significant price appreciation. Even though it may seem far from your current location, the potential for rental income and long-term appreciation can make it a worthwhile investment.

In your case, if you are concerned about managing the property from a distance, consider building a network of reliable professionals in the Corpus Christi area who can assist with property management tasks, such as property maintenance, tenant screening, rent collection, and property inspections. This way, you can still benefit from the rental income and property appreciation while minimizing the challenges of managing the property on your own.

Wholesaling can be a profitable strategy, but before deciding to wholesale the property, evaluate the potential rental income and long-term prospects in the small town near Corpus Christi. Conduct thorough market research, assess the demand for rentals in that area, and analyze the potential returns on investment.

If you determine that the property has strong rental potential and you are willing to build a remote management team, keeping it as a rental property could be a viable option. However, if the numbers don't align with your investment goals or managing the property from a distance proves to be too challenging, wholesaling the property could be a reasonable decision.

Ultimately, it's important to weigh the financial returns, your investment strategy, and your comfort level with managing properties remotely. Consulting with a local real estate professional or property management company can provide further insights specific to the Corpus Christi area and help you make an informed decision.

Best regards,